Lekoil announces oil flow from Otakikpo-002 well

Lekoil Ltd, an Africa focused oil and gas exploration and Production Company with interests in Nigeria and Namibia has announced that the Otakikpo-002 well, located in Nigeria’s Otakikpo Marginal Field, has flowed oil from two upper zones during two production tests.
In a statement yesterday, it said that one zone flowed at a peak rate of 6,404 barrels of oil per day (bopd) through a 36/64 inch choke, while another zone flowed oil at a peak rate of 5,684 bopd using the same size choke. Production testing at the well was curtailed due to storage capacity limits on well-testing equipment.
It plans to commence commercial production by the end of the second quarter of 2016.
As previously announced last September, the well’s lower E1 zone produced from the first of four planned production tests, flowing oil at various choke sizes for over 24 hours at a peak rate of 5,703 bopd.
However, during completion operations the well encountered cementing issues resulting in the temporary suspension of the E1 zone to allow remedial work to take place.
To keep Phase 1 of the Field Development Plan on track and under budget, the company prioritized production from the second and third planned production zones, located in the two upper zones outlined above, and will pursue development options for the E1 zone in the future.
Following the completion of Otakikpo-002, well re-entry operations on Otakikpo-003 are expected to begin later in 2Q, which will target the E1 and C5 zones.
Lekoil expects to commence commercial production from Otakikpo-003 in 3Q and expects to be producing 10,000 bopd by year-end 2016.
Following the conclusion of Phase 1 of the FDP, which is expected by the end of 2016, the company will proceed to Phase 2 with new wells planned to bring aggregate production to a targeted estimated 20,000 bopd by the end of 2017.
Commenting, Lekoil’s CEO, Lekan Akinyanmi, said, “In about a year and half, Lekoil and its partner GEIL have managed to bring to life a marginal oil field which is expected to produce 10,000 bopd by year-end, demonstrating its technical and financial strengths as well as illustrating the fast-track approach by the Department of Petroleum Resources to developing previously marginal fields and unlocking value for the benefit of Nigeria.
“These successful tests represent another major step towards continuous production and are the most significant accomplishment since operations began – demonstrating our disciplined approach to developing an asset efficiently.
“Safety remains our key priority and we will continue applying the highest standard to our operations as we grow production to, and beyond, our initial Phase 1 target.”